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Microcap & Penny Stocks : Trading post-bankruptcy bounces -- Ignore unavailable to you. Want to Upgrade?

To: LLCoolG who wrote (65)	6/4/2009 3:43:40 AM
From: RockyBalboa	1 Recommendation Read Replies (1) \| Respond to of 93

That what I was thinking; if something is expected to happen and priced in, the markets shall not move; Example: GM filed Ch.11 and the market actually went up as if nothing happened. By the way: the CDS settlements for FNM and FRE were the lowest on record - with reference bonds valued at 95 to 99.5%; so the payout was minimal in FRE, FNM. Lehman was on the other side of the spectrum with reference bonds valued at 8%: Why I think such a crash is not possible right now: The october incidents occurred because of the perceived consequences of Libor at +400 over fed funds etc (which again was a the result of the failure of money markets, which again was the result of general distrust). But when is such a crash possible again: Similar to 2008 when commodities went bananas - the fed , and other CBs will have to drain money, big time to stop a liquidity bubble from growing too big; and to break momentum this drain must be severe and fast.